payments subject to default risk. We use a discrete risk-neutral present value model with expected payments for risk …-neutral investors and risk-free spot rates for the valuation. The expected payments include the potentiality of default by weighting … promised payments the risk-neutral default probabilities. The required risk-neutral default probabilities are derived from …

believe our work will open up a new risk investing paradigm for those seeking long-term advantages. …

This paper analyzes the influence of downside risk on defaultable bond returns. By introducing a defaultable bond …-trading model, we show that the decline in market risk tolerance and information accuracy leads to trading loss under downside … conditions. Our empirical analysis indicates that downside risk can explain a large proportion of the variation in yield spreads …

out some key issues on how the credit risk associated to these products can be reduced and, finally, in the last section …

-levering procedure is around for the case of risk-free debt. The procedure for risky debt is much less clear even under very simplifying …

that the financial distress risk determines value premium whereas other theorize that value premium is basically the … compensation for operating leverage (investment activity risk). This research provides empirical evidence on this theoretical … to market ratio (B/M), and systematic risk on non-financial sector firms trading at the Pakistan stock exchange (PSE …